Accounting for production costs
The cost of a product, work, or service is an estimate, in terms of value, of the total cost of producing this product, work, or service and selling it. The cost determines the costs that were actually incurred and became resources for production, regardless of the time of payment of funds, ie, in the reporting period in which the costs occurred.
The main tasks of cost accounting:
1) accounting of the volume of products, works, services (PRU);
2) timely full and accurate reflection of actual costs;
3) the calculation of the cost of PRU;
4) control over saving resources;
5) identification of reserves to reduce the cost of PRU;
6) submission of information for making management decisions.
In accordance with the objectives and in order to control the accounting of the cost of production is determined in the following order in relation to cost:
1) by types of PRU;
2) at the place of origin;
3) by type of expenditure.
The cost of the enterprise PRUs includes the costs used in the production of raw materials and materials, in particular:
1) the cost of preparation and development of production;
2) costs directly related to the production of PRU;
3) costs associated with the organization of contests and exhibitions;
4) costs associated with the maintenance of production processes;
5) costs associated with normal working conditions;
6) costs associated with payments provided for by legislation;
7) deductions on social and medical insurance.
The cost does not include the costs and losses attributable to the profit and loss account, the cost of canceled stocks, the costs of maintaining mothballed production facilities, fines, penalties. Part of the costs associated with production activities, redeemed at the expense of profits remaining at the disposal of the enterprise. The costs associated with the production of PRU are reflected in the accounts of the accounting of material costs of one of the sections of the chart of accounts. Depending on the SCP, the company determines the list of accounts from this section and the objects of accounting for each of the accounts. Typically, costs are taken into account on the following accounts: 20 “Primary production”, 23 “Auxiliary production”, 26 “General expenses”, etc. At the end of the accounting period, account 23 “Auxiliary production” closes, the costs for it are transferred to accounts 20 “Basic production”, 26 “General expenses”. After that, account 26 is closed, and for this, the share of overhead costs (HP) is first found out, then the share of HP, not related to the main production, but related to other works and services.